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I received your _________________ regarding the budget overrun on _________________. While I understand that you feel the amount of money spent on the project is excessive, I'd like to explain briefly how the overrun came about.

_________________.

I hope that this helps you to understand how this situation arose. Clearly, I was aware of the expenses at every stage in the process. There was no deliberate waste, and no careless or thoughtless spending. The bottom line is that the project and all its components just cost more than we had budgeted for it.

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